Vacancy rate drops in major Detroit office buildings

7:08 PM, March 26, 2014

The employees of Title Source watch as Dan Gilbert, chairman and founder of Quicken Loans welcomes them to Detroit outside the First National Building at Cadillac Square in Detroit , Wednesday, July 25, 2012. / Andre J. Jackson/Detroit Free Press

Lowe Campbell Ewald's CEO Jim Palmer. / Lowe Campbell Ewald

Vacancy in Detroit’s highest-profile office buildings declined to 11.5%, down from 26% three years ago, according to a recent analysis from Jones Lang LaSalle.

Much of the demand, the firm said, has been driven by suburban tenants who have moved into offices in the city.

In the past year, the three largest tenants were Title Source, which took 330,000 square feet in the First National Building; Quicken Loans, which added another 260,000 square feet, and Lowe Campbell Ewald, which leased 122,000 square feet at the Ford Field complex.

Overall, the report, titled “Detroit Skyline Review,” looked at 20 buildings that are larger than 100,000 square feet, have been built or have had significant renovations since 1985 — or are in a high-profile location or architecturally significant.

During the three years, the report said, nearly 1.5 million square feet was absorbed.

In that time, Dan Gilbert, founder and chairman of Quicken Loans and Rock Ventures, was also acquiring and renovating his real estate portfolio. The group’s holdings grew by about 3 million square feet and now include First National Building, Chase Tower, One Woodward Avenue, Chrysler House and 1001 Woodward.

It also owns a parking lot and garages with more than 4,250 parking spaces.

Jones Lang LaSalle has offices in Detroit and Royal Oak and manages about $47.6 billion in real estate assets.